Air Force Federal Credit Union recently increased its 1-year and 2-year CD rates. Also noteworthy is that its 7-year CD rates remain very competitive. The credit union's top-tier 1-year and 2-year CD rates went up by 15 basis points. The Jumbo 1-year CD now has a 1.00% APY, and the Jumbo 2-year CD has a 1.10% APY. These require a $100K minimum deposit. The rates for deposits under $100K are 0.85% APY for 1-year and 1.00% APY for 2-year. The credit union's Jumbo 7-year CD yield is still 2.00%. For deposits under $100K, the 7-year CD has a 1.85% APY. These rates are listed in the credit union's rates page as of 3/5/2013.
For details about the early withdrawal penalty, please refer to my last Air Force FCU post.
Air Force FCU used to be primarily limited to those connected to the military in certain states. However, there's now a foundation that anyone can join to become eligible for credit union membership. If you click on the "Join Online" link on the top menu of Air Force FCU's website, it will take you to an online application. Click on the "become a member" button, and you'll see all of the options for membership eligibility. I noticed a new option:
16. Members of The Lackland Gateway Heritage Foundation Inc.
Below the membership eligibility option list, you can select "Not a member of The Lackland Gateway Heritage Foundation Inc, but I would like to join." If you click on the informational link for this foundation, a page is shown describing this foundation. On this page it states the following two important facts:
* Membership in the Foundation is open to all people regardless of any military service affiliation.
* Membership dues in the amount of $25 are required to join the Foundation.
You can be immediately eligible to join Air Force FCU if you fall under the other options in the membership eligibility list. The first option is:
Military and Civilian personnel regularly employed by the Department of Defense who are assigned to, stationed at, or work at any United States Government installation, facility, or unit, afloat or ashore in Texas, Oklahoma, Arkansas, Louisiana, or Mississippi.
Credit union membership requires a minimum balance of $5 in the regular savings account.
Other Deposit Products and Deals
The credit union offers a free checking account with no monthly service fees. The credit union is part of the CO-OP Network. This allows members to use any of the CO-OP Network's 28,000 ATMs world-wide with no surcharge or transaction fee.
Credit Union Overview
Air Force FCU branches are located in San Antonio and Del Rio, Texas. The credit union is also part of the CU Service Centers which allows you to make several banking transactions at shared branch offices around the nation.
The credit union has an overall health score at DepositAccounts.com of 4 stars (out of 5) with a Texas Ratio of 3.53% (excellent) based on September 2012 data. Please refer to our financial overview of Air Force FCU for more details. The credit union is federally insured by the NCUA (Charter # 8169).
How These CD Rates Compare
The 1.00% APY for a 1-year term is competitive, but there are still a few internet banks offering 1.05% APY. These include CIT Bank, Nationwide Bank and Colorado Federal Savings Bank. CIT Bank's 1-year Achiever CD is the best deal since it allows for one add-on deposit.
With PenFed's March rate cuts, Air Force FCU is now the only institution with a nationally available 7-year CD with a yield of at least 2.00%. Navy Federal still has a 2.00% APY 7-year CD, but it has membership restrictions. The only other institution with a nationally available 2% CD (that's not a 10-year CD and doesn't have checking requirements) is Mountain America Credit Union. This is a 5-year CD. I reviewed it last month.
These rates are accurate as of 3/5/2013.
Searching for the Best CD and IRA CD Rates
To search for the best nationwide rates and the best rates in your state, please refer to the following sections of DepositAccounts.com: